Empirical Study of China Stock Market and Economic Growth Based on VAR Model

China stock market has been making great contributions to China's economy since established.In this paper, a VAR model, with stock market factors and economic growth factors involved, is established to study the relation between China stock market and economic growth.The result indicates that a one-way Granger causality exists between the development scale of stock market and the animation of stock market, that is to say, a well developed and animate stock market will push forward economic development; and that the capitalization rate of stocks and the commercial value rate may promote each other, namely the better the development of stock market is, the higher the stock price is, hence increase of the value of stock.As a result, the healthy development of China economy will be facilitated.